Stronger Together: India–Sweden Economic Ties to Enter a New Growth Phase

India and Sweden have taken significant steps toward elevating their bilateral economic partnership, signaling a shared commitment to sustainable growth, technological innovation, and inclusive development. At the center of this renewed engagement is Union Minister of Commerce and Industry Shri Piyush Goyal, whose recent visit to Stockholm was marked by substantive dialogues with top Swedish officials, business leaders, and policymakers. The minister’s visit reinforced India’s message that it is open for business, confident in its economic trajectory, and eager to deepen collaboration with like-minded nations like Sweden that value long-term strategic cooperation.

Minister Goyal, while addressing a high-level gathering in Stockholm, extended an open invitation to Swedish enterprises to become an integral part of India’s growth journey. “I’ve come here to invite Sweden and Swedish businesses, Swedish investors, to be an integral part of this growth story,” he declared, setting the tone for a dialogue defined by optimism and ambition. Emphasizing India’s unique demographic advantage, he spoke of a nation where the average age is just over 28, connected digitally, and driven by aspiration. “It is that youthful power which is driving the Indian economy today,” he noted, underscoring the importance of a young, tech-savvy population that fuels consumption, innovation, and industrial dynamism.

The strategic underpinning of the India–Sweden relationship rests on mutual complementarity rather than competition. Minister Goyal highlighted that both nations, despite their diverse geographies and economies, can achieve synergy across sectors such as clean energy, advanced manufacturing, digital technology, life sciences, and smart mobility. “We complement each other, we hardly compete in anything,” he remarked. This sense of compatibility offers a fertile foundation for Swedish firms to expand their presence in India, leveraging the country’s robust policy environment, infrastructural upgrades, and surging domestic demand.

India’s economic fundamentals were presented not just as attractive, but as resilient and future-oriented. Goyal pointed to the impressive 4.5x growth of the Indian stock market over the past eleven years, portraying it as a forward-looking indicator of investor confidence. “The stock market generally doesn't value the past—it's more forward-looking and discounts the future,” he said. This market dynamism, backed by macroeconomic stability, strong foreign exchange reserves, a reformed banking sector, and low inflation, forms a dependable base for long-term business engagement. The vision laid out extends far beyond short-term gains. With a current GDP of around $4 trillion, India is projected to become a $30–35 trillion economy within the next two decades, a trajectory bolstered by sustained investments in infrastructure and manufacturing.

The Minister’s meetings with Swedish Minister for International Development Cooperation and Foreign Trade, H.E. Benjamin Dousa, and State Secretary Hakan Jevrell were instrumental in framing a forward-looking bilateral roadmap. These engagements reaffirmed mutual interests in sectors like sustainability, green transition, circular economy, and resilient supply chains. The 21st India–Sweden Joint Commission meeting convened during the visit was pivotal, bringing together key agencies such as Vinnova, the Swedish National Space Agency, LeadIT, and Business Sweden. The discussions placed particular emphasis on fostering innovation-led partnerships and collaborative research in green technology, automation, and digital services.

India’s infrastructure landscape is undergoing a transformation that promises enormous opportunity for global investors. With public investment in infrastructure exceeding $125 billion annually, the scale and pace of development are unprecedented. Airports have more than doubled in number since 2014, port capacity has been significantly expanded, and the highway and power generation sectors have seen parallel progress. Notably, India’s power grid, one of the world’s largest, is expected to scale to a capacity of one terawatt in the next five years, with half of that projected to come from clean energy sources. Minister Goyal emphasized that this is not just about building physical assets but creating an enabling ecosystem for inclusive and sustainable growth.

Swedish companies already have a significant footprint in India, with over 280 firms operating across a range of sectors. Most are actively involved in manufacturing, contributing to India’s flagship "Make in India" initiative. However, Goyal believes this is just the beginning. “The sky is the limit. There’s huge potential awaiting all of us,” he said, calling for deeper engagement from Swedish businesses. Many of these companies are now exploring the potential to scale their operations further, drawn by India’s skilled workforce, investor-friendly policies, and expanding consumer base.

The momentum is further strengthened by ongoing negotiations for the India–EU Free Trade Agreement (FTA), a potential game-changer in economic relations between India and the European Union. “The India–EU FTA is clearly going to be a great enabler,” said Goyal at the India–Sweden Policy Forum. While acknowledging the challenges involved, especially around non-tariff barriers such as regulatory standards and certifications, he assured that “a lot of things can be worked upon in a win-win situation.” Negotiations are progressing constructively with the European Commission and member states, and there is growing optimism that the agreement will significantly reduce trade friction, encourage investment, and create more seamless market access on both sides.

The India–Sweden Business Roundtable, convened as part of the visit, offered a practical platform for private sector leaders to share perspectives and explore new avenues of cooperation. Discussions covered automation, renewable energy, maritime technologies, advanced materials, and sustainable food systems. Business leaders expressed confidence in India’s facilitation mechanisms, particularly in areas like land access, skilling initiatives, and regulatory streamlining. The government’s proactive approach to ease of doing business and support for innovation and digital transformation was met with keen interest.

Minister Goyal’s vision for India’s development is deeply rooted in inclusivity. “Our focus in 11 years has been to make sure that every family has the basic needs taken care of—food, clothing, shelter, electricity, digital connectivity, water, good roads, quality healthcare, quality education, and skill development,” he stated. This holistic approach is generating a virtuous cycle of growth where rising incomes fuel consumption, drive investments, and generate employment. The rising middle class, he noted, is not merely a consumer demographic but a dynamic force shaping the future of India’s economy and, by extension, its partnerships.

What distinguishes this phase of India–Sweden engagement is the strategic alignment on values and long-term objectives. Both nations are committed to a green and inclusive future. Whether it is in circular economy models, zero-emission mobility, or digital governance, their policy ecosystems are increasingly harmonized. Goyal acknowledged this convergence and stressed that mutual trust, complementary strengths, and a shared vision make India and Sweden natural partners in shaping the economic architecture of the future.

As the world reconfigures its economic alliances amid shifting geopolitical realities, partnerships built on shared aspirations rather than transactional exchanges are gaining salience. The India–Sweden relationship exemplifies this shift. It is not merely about expanding trade volumes or signing investment deals, but about co-creating value, co-developing technology, and co-owning responsibility for a sustainable and equitable global economy.

In a statement reflective of both resolve and realism, Goyal remarked, “You cannot cross the seas by merely standing and staring at the waters. You’ve got to swim in the waters to cross the seas.” The message is clear—India is ready to move forward and invites Sweden to swim together toward a horizon rich in promise, prosperity, and partnership.I